Historic Two-Story Office
For Sale
$520,000
245 Oak St SE, Salem, OR 97301
Commercial, Salem, OR
Property Size1,892 SF
Lot Size0.16 Acres
Price / SF$274.84
Days on Market46
Property Features for 245 Oak St SE
General Information
Property type
Commercial Sale
Property subtype
Office
Zoning
Salem-MU-R
Rooms
Basement
View
Water
Standard status
Active
Size
1,892 SF
Lot size
0.16 Acres
Taxes and HOA fees
Tax Year
2025
Tax Annual Amount
5246
Utilities
Heating system
Central, Natural Gas, Forced Air
Cooling system
Central Air, Gas (Cooling)
Water front
1
Building Details
Year built
1900
Roof type
Composition
Listing Agency:
BLUM REAL ESTATE
Listed By:
GLADYS BLUM
(503) 485-1900
Added: Jul 22
Changed: Sep 2
Last Checked: Sep 5 at 8:06PM
MLS# 843735
Copyright © 2026 Willamette Valley Multiple Listing Service. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
Built in 1900, this 1,892-square-foot office building offers two levels with distinct interior configurations. The main floor includes a reception area and four private offices, while the lower level provides a second reception area and four partitioned workspaces. Separate entrances serve each level, supporting the existing single-tenant arrangement and a multi-occupant configuration.
The property is located at 245 Oak St SE in Salem, near the Salem Convention Center and downtown amenities. Zoning is Salem-MU-R. Building systems include natural gas, central, and forced-air heating, along with central air and gas cooling. The building also includes a composition roof and basement space.
The property is located at 245 Oak St SE in Salem, near the Salem Convention Center and downtown amenities. Zoning is Salem-MU-R. Building systems include natural gas, central, and forced-air heating, along with central air and gas cooling. The building also includes a composition roof and basement space.
Key Highlights
- 1,892‑square‑foot office building constructed in 1900
- Two‑level configuration with separate entrances for each floor
- Main level includes reception area and four private offices
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$26,053
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
5.01%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$521,060
$521.1K
Cap Rate 7%
$372,186
$372.2K
Cap Rate 9%
$289,478
$289.5K
Market Conditions
NOI Build-Up for 1,892 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$40.9K $21.60/SF
− Vacancy
−$6.1K −$3.24/SF
EGI
$34.7K $18.36/SF
− OpEx
−$8.7K −$4.59/SF
NOI
$26.1K $13.77/SF
Area
Salem, OR
Vacancy
15.00%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
25.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$521,060
Cap Rate 7%
$372,186
Cap Rate 9%
$289,478
Alternative Uses
Best Use
Office B
$372.2K
$325.7K – $434.2K
NOI $26,053 @ 7.0% cap · market cap 5.01%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$502.3K
$439.6K – $586.1K
NOI $35,164 @ 7.0% cap · market cap 6.76%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Single-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
3,287
Businesses Nearby
Explore this area
Business Placement
Demographics for 97301, OR
56,393
Population
21,419
Households
2.6
Avg Household Size
34
Median Age
18%
College-Educated
81%
High-School Grad
11.3 sq mi
ZIP Area
4,991
Density / Sq Mi
$57,497
Median Household Income
$33,220
Median Earnings
$1,197
Median Rent
$310,800
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Office building - Flexible two-level layout with private offices, partitioned workspaces, and separate entrances serving each floor.
Where is this office building located?
The property is located at 245 Oak St SE Salem, OR.
What is the asking price?
The asking price for this property is $520,000.
What are key features of this property?
This property features: 1,892‑square‑foot office building constructed in 1900; Two‑level configuration with separate entrances for each floor; Main level includes reception area and four private offices
